Washington Consensus Basic Definition The Washington Consensus is

Washington Consensus

Basic Definition • The Washington Consensus is a set of 10 economic policy “prescriptions” considered to constitute the "standard" reform package promoted for crisis-wracked developing countries by Washington, D. C. –based institutions such as the International Monetary Fund (IMF), World Bank, and the US 2008 Treasury Department.

Williamson’s 10 points 1. 2. Fiscal discipline A redirection of public expenditure priorities toward fields offering both high economic returns and the potential to improve income distribution, such as primary health care, primary education, and infrastructure 3. Tax reform (to lower marginal rates and broaden the tax base) 4. Interest rate liberalization 5. A competitive exchange rate 6. Trade liberalization 7. Liberalization of inflows of foreign direct investment 8. Privatization 9. Deregulation (to abolish barriers to entry and exit) 10. Secure property rights

Summarized as • • Macro economic stability (pt. 1, 2, 3, 4) Floating Exchange rates (pt. 5) Free trade (pt. 6 & 7) Free Markets (pt. 8, 9, 10) From Tejvan Pettinger, 2013

Macro 1. Fiscal discipline 2. A redirection of public expenditure priorities toward fields offering both high economic returns and the potential to improve income distribution, such as primary health care, primary education, and infrastructure 3. Tax reform (to lower marginal rates and broaden the tax base) 4. Interest rate liberalization

Floating Exchange Rates 5 A competitive exchange rate

Free Trade 6 Trade liberalization 7 Liberalization of inflows of foreign direct investment

Free Markets 8 Privatization 9 Deregulation (to abolish barriers to entry and exit) 10 Secure property rights

Videos The Washington Consensus (14 min) Lecture by Prof. Noah Zerbe, Humboldt State University https: //www. youtube. com/watch? v=X_uu. IGfm-Wo Criticism on Washington consensus (1: 30 min) https: //www. youtube. com/watch? v=QKvig 0 c. FQJc Pro-Washington Consensus (46 sec) The consumer needs to learn how to best manage this new vehicle for economic growth and invest in their own futures. But banks and financial institutions need to use the language, idiom, and images of the people they are trying to help. With ed. Fin, citizens from all around the Western Hemisphere will: - learn how to manage and save money - learn how to use credit to improve their lives - learn how to invest in their families - contribute to the sustainable development of their countries - realize the right of self-determination https: //www. youtube. com/watch? v=me. T 6 hu. Tds 4 E

Very Good overview in 12 minutes BE SURE TO WATCH THIS https: //www. youtube. com/watch? v=X_uu. IGfm-Wo

Does it work? ? ? • On inspection, there appears nothing wrong with these wonderful tenets. • However, this is just on the surface, but if you take a peek under the hood and ask questions and investigate - you will realize that it very much depends on how these tenets are interpreted and applied. • These so-called tenets were incorporated very quickly - much to the glee of the US Treasury and without any voting or "consensus" at all - into other US economic agency tentacles such as the WTO, IMF and World Bank. And these tenets were not just simple mission statements - suddenly they had become the rules. Read more: http: //www. digitaljournal. com/article/266389#ixzz 3 x. Kk. FBu 9 b

Williamson Defends against Neo. Liberals • It is often used interchangeably with the phrase “neoliberal policies. ” • Williamson’s response “I of course never intended my term to imply policies like capital account liberalization. . . monetarism, supplyside economics, or a minimal state (getting the state out of welfare provision and income redistribution)”

Monetarism • Monetarism is an economic theory that says the money supply is the most important driver of economic growth. As the money supply increases, people demand more. Factories produce more, creating new jobs. • Monetarists warn that increasing the money supply only provides a temporary boost to economic growth and job creation. Over the long run, it will increase inflation.

Supply-side economics • Supply-side economics is better known to some as "Reaganomics, " or the "trickle-down" policy espoused by 40 th U. S. President Ronald Reagan. . However, the single idea behind all three pillars is that production (i. e. the "supply" of goods and services) is most important in determining economic growth.

Minimal state • Minimal state refers to a state with the least possible amount of powers. It is a term used in political philosophy where the state's duties are so minimal that they cannot be reduced much further without becoming a form of anarchy.

Three Current Issues regrading WA Con. 1. Not an ideology, need also to avoid crises 2. Incomplete or Neglected: Need to fully address things continuously first and second generation 3. Too narrow – need to concentrate more on poverty reduction and distribution & less on just higher GDP

Little broader review of Washington Consensus Op-Ed: The Washington Consensus: Sharks Feasting By Bill Jencks Feb 5, 2009 in World On inspection, there appears nothing wrong with these wonderful tenets. However, this is just on the surface, but if you take a peek under the hood and ask questions and investigate - you will realize that it very much depends on how these tenets are interpreted and applied. Readmore: http: //www. digitaljournal. com/article/266389#ixzz 4 WWVwd 3 zu

Consensus 2. 0? ? ? Dani Rodrik argues that there now exists an “Augmented” Washington Consensus, which in addition to the items listed above, adds: 1. Corporate governance 2. Anti-corruption 3. Flexible labor markets 4. WTO agreements 5. Financial codes and standards 6. “Prudent” capital-account opening 7. Non-intermediate exchange rate regimes 8. Independent central banks/inflation targeting 9. Social safety nets 10. Targeted poverty reduction

Leftist Critique in Kerala State of India

"The Comic Strip of Neoliberalism" is a series of informational comics which you can read by clicking by searching under this name at Wilson Library Web site

Impacts? ? ?

Very Good overview in 12 minutes https: //www. youtube. com/watch? v=X_uu. IGfm-Wo

INS 200 The Washington Consensus https: //www. youtube. com/watch? v=z. DNWC 5 Sl. Ssc 20 MINUTES – PRETTY GOOD BUT NO IMAGES

Good Audio Review of Washington Consensus but quite long https: //www. youtube. com/watch? v=z. OCUra. Wzf 2 Y

The opposition • I thought these US agencies were meant to help under-developed countries? So how come China and India have done so well and so quickly virtually on their own? • There is only one answer to this. BILL JENCKS FEB 5, 2009 Read more: http: //www. digitaljournal. com/article/266389#ixzz 4 WWXSa. L 8 t

Equador Today https: //www. aljazeera. com/news/2019/10/ecuador-unrest-led-mass-protests -191010193825529. html